Heating New Zealand’s Stake In Premium Beef Market

Te Whare Wānanga o Waitaha | University of Canterbury (UC) Senior Lecturer in Management, Marketing and Tourism Dr Anna Earl’s research aims to understand changes required to advance New Zealand’s slice in the Wagyu beef industry. This innovative study delves into the potential strategies that could position New Zealand at the forefront of this high-value market.

“We have this beautiful image of New Zealand, yet much of our beef is exported as a commodity. We’re looking at how we can change that by adding value to our produce and ensuring it's recognised as a premium product in international markets,” says Dr Earl.

Known for its marbling, flavour and tenderness, Wagyu beef is expensive, premium beef highly prized by connoisseurs in Japan, where it originated, and many other countries.

Dr Earl’s research has identified the key barriers to the New Zealand farming industry capitalising on premium foods such as Wagyu beef, including a lack of infrastructure to support high-end cuts of meat, policy changes needed to support sustainable farming with a longer production cycle, and a lack of education on the benefits and practicalities of long-term farming practices.

“When you think about the value chain, beef is a big one, but the problem with Wagyu beef is that it takes three years to be able to sell it. When you think about the return on investment, it’s just too long. So, most people think it’s not worth doing.”

Wagyu beef comes from specially bred cattle that traditionally spend the latter part of their lives fed by grain in purpose-built barns. Dr Earl believes the benefits significantly outweigh the production time.

“Wagyu cattle can be integrated into a system that’s sustainable, especially if you’re working with land that isn’t ideal for crops, they contribute to soil health, and they can be part of a sustainable farming ecosystem,” she says.

“Once you establish a herd, the ongoing costs are lower compared to some other types of farming. The long-term payoff, both financially and environmentally, can be substantial. We also found that business success in this industry comes to innovative business models, as well as nurturing relationships in the whole value chain”

Dr Earl says with limited players in the market, there’s an opportunity for this to become a highly profitable export to countries such as China, the United Kingdom, United States, and Australia, which consistently seek these premium goods.

“You’re catering to a high-end market that really values the quality of the product. This isn’t something that everyone is doing, so there’s a real opportunity to stand out.”

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